Pound nears lowest level since pandemic amid more chaos for Boris Johnson
July 6, 2022 (Investorideas.com Newswire) The British pound fell against the U.S. dollar and the UK's leading benchmark FTSE dropped amid more uncertainty coming from PM Boris Johnson's administration.
UK Health Secretary Sajid Javid said in a tweet that he quit Johnson's government and that he's lost confidence in the Prime Minister. Meanwhile, the Chancellor of the Exchequer Rishi Sunak also announced his resignation on Tuesday.
The pound registered a decline of 1.4% right after the news, after earlier falling as much as 1.8% to 1.1899, the lowest since March 2020.
Nigel Green, the CEO of deVere, one of the world's largest independent financial advisory, asset management and fintech organisations, says: "Slowing growth, and other economic factors, are likely to have had more of an impact on the pound.
"But there's no getting away from the fact, this all creates more much more uncertainty for sterling."
Global investors were warned in late May to hedge against an 'existential' crisis with the pound by Wall Street analysts as the British currency faces issues usually only seen in emerging markets.
Whilst sterling strengthened 0.2% that month, it remains the third-worst performing major currency this year. It has weakened 8% to $1.2468 in 2022.
The CEO doubled down on a previous comment made during Boris Johnson's previous Confidence Vote, noting that he believes there will be a leadership challenge before the next election.
When names are put into the ring to become the next leader, and policy agendas of the frontrunners are known, "the pound can be expected to become highly volatile - just as it did during the Brexit negotiations," he explains.
"The issues laid bare by Johnson's possible successors that will impact the pound would include the UK's relationship with the EU and single market access, fiscal stimulus and the Northern Ireland protocol, amongst others."
Nigel Green concludes: "Sterling is falling out of favour currently for a myriad of reasons, including politics.
"In turn, this will favour the dollar, the euro and others."
t: +44 207 1220 925
deVere Group is one of the world's largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.
This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.
More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ and tickertagstocknews.com